Have been invested for some time and track on spare times. I don’t think we’ll get great ROE from this bank like we see in other private banks. Having said that, a very good possibility of consistent 12-13% ROE is highly possible in near future. The management’s comments of 14% ROE from 1% ROA doesn’t look feasible I feel. Future is obviously open. At this point of time, small ticket sizes of the loans, mostly doing collaterals and ability to recover slippages has been evident. Assuming company won’t grow like HDFC Bank during its younger days, at the same time, they can still grow at a reasonable rate, and I feel current valuations are very cheap for a company with steady growth and possibility of higher growth in the future.
Disc: Invested.
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